With reference to 'Urban Cooperative Banks' in India, consider the following statements :

1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?

The Banking Regulation Act, 1949 was extended to cooperative banks through an amendment in 1966. This brought cooperative banks with a certain level of capital under the regulatory purview of the RBI, creating a system of dual control where the RBI oversaw banking functions and State Governments handled registration, management, and liquidation.

Statement 3 is correct.

While the State Governments have some regulatory powers, the primary supervision of Urban Cooperative Banks (UCBs) does not solely rest with local boards set up by them. The RBI also plays a crucial role, especially after the Banking Regulation (Amendment) Act, 2020, which strengthened the RBI's powers.

Statement 1 is not correct.

The RBI has issued guidelines allowing Primary Urban Cooperative Banks (UCBs) to raise capital by issuing equity shares, preference shares, and debt instruments.

Statement 2 is correct.

Hence, only statements 2 and 3 are correct.